SAN FRANCISCO, May 8, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on Canoo Inc. investors f / k / a from Hennessy Capital Acquisition Corp. IV (NASDAQ: GOEV) with Significant Losses urges you to file your losses now. A class action lawsuit for securities fraud has been filed and certain investors may have valuable claims.
Teaching time: August 18, 2020 – March 29, 2021
Lead plaintiff deadline: June 1, 2021
Contact an attorney now: [email protected]
Canoo Inc. (NASDAQ: GOEV) class action against securities fraud:
The complaint alleges that Canoo misled investors before and after its IPO through a SPAC deal on December 21, 2020.
In particular, Defendants have repeatedly touted a three-pronged strategy for generating sales and growth: (i) an engineering services segment; (ii) the sale of vehicle subscriptions to consumers; and (iii) selling vehicles to other companies. Canoo also highlighted its agreements with established OEMs, including Hyundai, to jointly develop a future EV platform
In truth, the defendants hid that Canoo (1) has reduced its focus on its plan to sell vehicles to consumers through a subscription model; (2) would degrade the engineering services business; and (3) no longer had any partnerships with OEMs and were no longer involved in the previously announced partnership with Hyundai.
On March 29, 2021, the truth emerged when Canoo abruptly announced that its CFO would be replaced, that it would downgrade its engineering services business, stop focusing on subscription sales to consumers, and attempting to use its own vehicles for commercial purposes manufacture and sell operators. In a conversation with investors, Canoo’s chairman described the management’s statements about the company’s partnerships as “aggressive” and “they did not meet our standard of representation in the public markets”.
In response to this news, analyst Roth Capital downgraded the company’s shares from buy to neutral buy and lowered its price target, and the price of Canoo shares plummeted.
Most recently, Canoo abruptly announced further departures of the C-Suite on April 22, 2021. This time, according to the company, CEO Ulrich Kranz and General Counsel Andrew Wolstan will leave Canoo with effect from April 30, 2021.
“We are focusing on investor losses and proving that defendants have deliberately misrepresented the profitability of Canoo’s business model and business partnerships,” said Reed Kathrein, Hagens Berman partner who led the investigation.
If you are a Canoo investor and have significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about Canoo should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
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Reed Kathrein, 844-916-0895